Deals
Hedge Funds Beating Banks to LBO Loans in Europe: Credit Markets
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The leveraged loan market is becoming riskier in Europe as private-equity firms shun banks in favor of hedge funds and other institutional investors to finance buyouts.
Of the seven junk loan deals totaling 2.6 billion euros ($3.5 billion) issued last month, none featured portions where principal has to be paid down in installments, the type of senior debt usually sold to banks, according to data compiled by Bloomberg. Borrowers are also seeking to loosen investor protection, with so-called covenant-lite transactions surging to